Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Whiston. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Whiston have the right to extend the lease for an additional ninety years under legislation. Please give careful consideration before putting off your Whiston lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Whiston with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Whiston leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the freeholder of her leasehold apartment in Whiston, Lucy initiated the lease extension process as the 80 year threshold was rapidly advancing. The transaction completed in August 2014. The freeholder’s fees were kept to an absolute minimum.
Ms Robyn Scott acquired a one bedroom apartment in Whiston in February 1995. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable homes in Whiston with an extended lease were in the region of £176,200. The average ground rent payable was £65 billed per annum. The lease ran out in 2081. Having 56 years left we calculated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.
In 2009 we were phoned by Mr and Mrs. U Green who, having moved into a ground floor apartment in Whiston in September 2011. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Identical properties in Whiston with an extended lease were in the region of £242,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease finished on 4 August 2092. Given that there were 67 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.